Does this ("no approved earth connection") perhaps mean that there has never been a TN earth and that, when the guy measured the sheath to see if he could connect it as a TN-S earth he found that it had too high an impedance for that?
This is where photos will come in very handy.
AFAIK, there are no subterranean TT supplies in London, although I will bow to superior knowledge. Subterranean TT supplies are the only incoming supplies (to my knowledge) where you may encounter PILC with an unconnected lead sheath. All other PILC is either TN-S or ex-TN-S converted to TN-C-S.
So, unless it is TT using PILC, it is likely the cable should be maintained by the DNO.
However, I've just re-read the UPN note, and wonder if we have all been jumping to the wrong conclusion. It says "There is no approved earth connection at the property. Test show high ELI 6.65 ohm phase to lead sheath. Therefore the lead sheath is not a good earth".
The only other possibility for a get-out clause is to interpret "there is no approved earth connection at the property" to mean that, actually, there is one and it may well have been provided by the DNO, but it is made with a Tenby type clamp, which is not "approved".
In my experience, these have been used by several DNO's in the past (despite their rules forbidding it) to get a better connection to the lead sheath of PILC. They have also been used by DIY-ers and pseudo sparks which may explain UPN's reluctance to accept responsibility for it.
Having said all that, in my experience of working in the North West (Norweb), Merseyside/ North Wales/ Cheshire (Manweb), Staffs/ West Mids/ Worcestershire (MEB), Bristol (SWEB), the Yorkshires (YEB), Derbyshire, Notts and Leicestershire (EMEB) and Hants (SEB), I can't remember anyone from the DNO who has been obstructive regarding incoming supply earthing faults.
They have always gone out of their way to be helpful & I have only once or twice in all my career been aware of a charge being levied for supply of an earth terminal on an incoming supply.